Since April 2022, Ontario’s gambling market has dropped its boundaries, and slowly this industry began to blossom. But what is the aftermath of legal casinos?
Ontario’s online gambling market – where it stands now
Ontario launched its online gambling market on April 4, 2022. The primary regulator is iGaming Ontario (iGO), a subordinate of the Alcohol and Gaming Commission of Ontario (AGCO), and this institution supervises the quality and security of players’ gaming experience.
iGaming Ontario’s primary focus is working with AGCO to manage and develop a safe online gambling market by providing verified private operators. Each online casino must undergo a verification process to obtain a licence through which the company can operate legally.
What are the effects of online gambling legislation?
Many effects come with the new regulations and a new market scene in Ontario’s gaming industry. On the one hand, the Canadian government benefits from considerable revenue due to taxes and licensing fees.
There are also new job opportunities for Canadians in the tech sector and customer services. However, the Canadian government must face some obstacles regarding preventing online users. Through iGO’s establishment, the government must impose measures to prevent gambling addiction and other gambling-related potential issues such as money laundering.
Licensing requirements for Ontario operators
Each gaming operator that wants to launch in this newly-regulated market must undergo a verification process. Thus, to obtain a licence approved by the Alcohol and Gaming Commission of Ontario, an operator must apply through AGCO’s online platform.
The operator must provide evidence of their financial stability and responsible practices. Also, the operator must pay a fee. If the application process is done correctly, the gambling licence will be issued shortly after.
The main changes since the introduction of Ontario’s new iGaming laws
The launch of the gambling industry significantly changed Ontario’s market. At the same time, the precedent regulations did not obstruct gambling through offshore operators; the revenue that Canadian players were leaving the Canadian market untaxed.
Thus, these new regulations bring investment and proliferation opportunities, as the Canadian government now obtains the necessary income to redirect their investments.
Moreover, gambling affiliates must now comply with Ontario’s regulations and implement changes such as the elimination of any signs of incentives (words such as “bonuses” or “promotions” can no longer be present on gambling platforms).
Gambling advertising has a significant influence
One consequence of online casinos’ legalisation is that advertising thrived in 2022 compared to previous years.
Almost half of Ontarians have declared that gambling advertising has become quite common, and 17% of Ontarians believe that the authorities should handle this issue to manage the potential harm these new changes have brought to their community.
How many operators have opened in Ontario?
As Ontario’s gambling market will soon end its first year, we have to draw a line and inspect the volume of this market. iGaming Ontario keeps track of each new online bookmaker launched in Ontario’s gaming market.
Casinobonusca Ontario conducted research and concluded that as of January 2023, iGO registers 55 online casinos, 11 poker-dedicated platforms, and 27 sports betting websites. Among these platforms, iGaming Ontario licensed critical operators such as Bet365, Betway, Unibet, 888 Sport, and many others.
The sports betting sector gained $162 million in revenue in the first months
In August 2022, reports showed that the sports betting industry generated $162 million in revenue and over $192 million in the second quarter. The last quarter of 2022 was for sure influenced by the NFL season. However, statistics show that with the legalisation of online gambling platforms, the number of Canadians who gamble online has increased to 19.3 million active gamblers.
What are the most played online casino games in Ontario?
Studies have shown that Canadians prefer online versions of classic casino games. From Live Blackjack to slots and poker, the number of online players in Ontario has increased to 35% compared to other Canadians (only 30% of the rest of Canadians gambled in 2022).
Ontario’s gambling market tops the lucrative sectors
In 2021, Ontario’s gambling sector brought almost half of the 1.2 billion revenue of the Canadian gambling industry, generating $500 million. With the new iGaming laws, Ontario’s gambling market crossed $750 million in 2022.
Therefore, we can predict that Ontario’s gambling industry will become even more lucrative despite its strict regulations.
Promising predictions for Ontario’s gambling sector
As straightforward as the future seems, statistics show that Ontario’s gambling revenue will increase to $3.5 billion while also acceding to a growth rate of 6% yearly to reach $4.5 billion by 2027. However, it remains to be seen how the new regulations of the iGaming sector will affect the market.
As an Amazon Associate, Icy Canada earns from qualifying purchases.
